Modi planning for 100% FDI in pharma, aviation and defence sectors. What are the disadvantages??

For quick reforms, Modi is now planning for 100% FDI in pharma, aviation and defence sectors. Most of the Indians are crying and taking a dig at Modi. My question is what are the disadvantages of 100% FDI? Can someone please throw some light on this issue. Please stay on topic and don’t start bashing Modi

if you ask an open ended questions as this a question as this, which has an open ended answer which can stretch from zero to hundred in its depth.. then at what level of understanding of these things are you at ? (you = whoever is asking the question.)

i mean, depending on the understanding or previous knowledge of the person only can anyone sensibly address such thing.

P.S.: i am not the one going to address it. (for those who are biting their nails thinking an essay is coming).

not worth it. [despite what the OP (half heartedly) requested, topics do veer off in odd directions, undesirable directions).

GAME ONAttack is the best defence: The Modi government beats Rajan blues with fresh FDI salvo
Manu Balachandran & Suneera Tandon

That’s how I do it. (Reuters/Adnan Abidi)
Amid the fallout of Raghuram Rajan’s decision to exit, the Narendra Modi government has decided to make its own move.

Two days after the Reserve Bank of India governor said he won’t seek a second term, the Bharatiya Janata Party (BJP) government announced a series of changes to the country’s foreign direct investment (FDI) regime.

Foreign investment norms in aviation, defence, pharmaceutical and retail sectors have been tweaked, which according to prime minister Modi now “makes India the most open economy in the world for FDI.” In particular, the new norms could be good news for Apple, which has been pushing hard to gain access into India, one of fastest growing smartphone markets in the world.
“Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India,” Modi added.

The last time such sweeping changes were made to India’s FDI regime, the BJP had just suffered a resounding defeat in the Bihar elections in Nov. 2015. A day after the Bihar verdict, the Modi government announced changes to the FDI policies in 15 sectors, including defence, mining and banking. The government had also allowed 100% FDI in completed construction projects, non-news channels, teleports, cable networks and certain plantation industries.

This time around too, the timing of these FDI announcements is a clear signal of the government’s intent to take the focus away from a debacle—in this case, Rajan’s decision to leave. Here are some of the proposed changes:
Defence

The government will now allow 100% FDI in defence, without the mandatory condition of foreign partners bringing “state-of-the-art” technology. Instead, the government will seek “access to modern technology in the country or for other reasons to be recorded.” Effectively, this only seems to be a change in nomenclature, as any investment above 47% is still subject to government approval on the basis of the new parameters.

The policy changes have also been extended to manufacturing of small arms and ammunitions covered under Arms Act, 1959.

Civil Aviation

The government has opened up FDI in airlines to 100%. However, the existing policy that permits foreign airlines to own only up to 49% stake in an Indian airline company is being retained. The new policy, though, could allow a sovereign fund from the foreign airline’s country of origin to purchase the remaining stake, which would effectively give it complete control.
100% FDI in existing airports will now be permitted under the automatic route.

Retail

In a big move that may finally help Apple open retail stores in India, the government eased sourcing rules for single-brand retailers that produce high-end technology goods. “Apple is expected to be a beneficiary of a three-year relaxation India is introducing on local sourcing norms with an extension of up to five years possible if it can be proven that products are ‘state of the art’,” Reuters reported. Relaxation of local sourcing norms could also benefit single-brand retailers such as Swedish furniture maker IKEA.
The government will now allow FDI up to 100% in the trading of food products that are manufactured or produced in India. The new rules will also be applicable to the sale of food products through e-commerce. It will also give foreign retailers access to setting up food retailing stores in India, as well as allow foreign funding in Indian companies that want to sell locally produced food products.

Pharmaceuticals

In the pharmaceutical sector, the government has now allowed 74% FDI in brownfield projects under the automatic route. According to existing policies, 100% FDI is allowed in brownfield projects, subject to government approval.

Defence I’d obvious,
Pharma for costly products and research and testing.

Aviation is also sensitive in terms of passengers safety and terrorism.

dada, actually i did not want to engage in this discussion, that too in this topic itself, but typing in chats is too cumbersome.

in our country, even a Bisleri isn’t made without foreign know-how and many airlines ownership is anyway routed through Malaysia/Sg or Mauritius type places.

FDI is just a way to open (our) markets as a political/economic favour to these nations/ industry lobby groups
which can target their sales/ expand their network.
it need not affect those two points you mentioned.

Passenger safety in this country has always been a joke and shall remain so.
[@[email protected]_0_0_D are you aware that the Boeing and/or NTSB guys in the US were so shocked when investigating the Mangalore crash, that they thought the CVR/CDR was faulty. Sadly it was not. Indian Airlines/ Air India did allow the Flight Commander to take rest on certain long haul flights and NTSB could hear snoring of the foreign pilot for the time… till about 20 minutes before the crash. he rested in the cockpit itself as per airline policy but fatigue got to him and he wasn’t fully awake/alert for the landing (the alertness to do the right things).]

bhaio , its depend in which hand fdi has ? even 50% FDI is also risky if it is in wrong hand like we saw in past , so nothing worry if ministry is serious and verify source and allocations with full transparency .

BTW to all baby shitters who cries a lot , you know what happened today ?? all news channel and so called economy pandits were saying sensex nifty will be drop bcoz of rajan quit . and it was expected that after these news some decline seen as market opened but later scene changed .
so what happened ?? it is highest of last 10 days , after that everyone kept a big finger on their mouth like in 2014 election result , so all the people dont give damn to these , and a governor post cant take down india ages back , it was just a post which changed every 3 years , and major policies are in hand of govt .
and like we know what happens when economist like manmohan singh work under UPA . so main thing is corruption free office then deserving candidate .

and we know how foreign diplomacy of india is improved so much in past 2 years , Russia Japan and US are so much favor in India inspite of fact all 3 dont like each other and i think why modi silent on pak but now can see how modi beating pak and throwing it back without war . war are not always fought with weapons , words & diplomacy can too handle it more better way without harming innocents .

rest everyone is free to express their views , but they should not be limited to personal benefit .

I honestly don’t know much about economy but as far as Raghu RAM Rajan goes his ways and method are known to be stupid and terrible. Americans made fun of him in 2005 But he sees the larger pic when it comes to financial growth. short term gain doesn’t always give positive results in longer run it actually does the opposit . Our economy isn’t like gambling increasing risk will take you to higher gain it might screw you in long run .I won’t Blindly believe in anyone but this guy is good he deserved some respect but again it’s not up to one person. Hope we does not screw like US did in the name of rapid Growth

@[email protected]_0_0_D Yes… Attack is the best defence , Though there was a slump in the stock market in the morning, it bounced back in the afternoon trade. But still at the end of the day, it was a win for political bureaucracy.

@[email protected]_0_0_D Yes… Attack is the best defence , Though there was a slump in the stock market in the morning, it bounced back in the afternoon trade. But still at the end of the day, it was a win for political bureaucracy.

hope you read my post , slump bcoz of news then it become normal . in same way bump in prices of tomato in delhi on watching news vendor hiked but prices become down on 2nd day itself as grofers bb were selling them under 50 only .

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